MACH7 TECHNOLOGIES LIMITED — Capital/Financing Update 2019

Dec 2, 2019

Proposed issue of securities

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Announcement Summary

Entity name

MACH7 TECHNOLOGIES LIMITED

Announcement Type

New announcement

Date of this announcement

Tuesday December 3, 2019

The Proposed issue is: A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

Maximum Number of ASX +Security Code +Security Description +securities to be issued

Proposed issue date

Monday December 9, 2019

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

MACH7 TECHNOLOGIES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

007817192

1.3 ASX issuer code

M7T

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Tuesday December 3, 2019

1.6 The Proposed issue is:

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A placement or other type of issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the below approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval

• Another approval/condition external to the entity required to be given/met for the placement or other type of issue

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No

Part 7B - Issue details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? Existing class

Details of +securities proposed to be issued

ASX +Security Code and Description

M7T : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued 32,258,065

Purpose of the issue

Private placement to Sophisticated and Institutional investors for the purposes of raising capital

Offer price details for retail security holders

Issue Currency Offer Price or consideration per Estimated or Actual? +security Actual AUD - Australian Dollar AUD 0.62000

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Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Part 7C - Timetable

7C.1 Proposed issue date

Monday December 9, 2019

Part 7D - Listing Rule requirements

7D.1 Are any of the +securities proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1a How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

22,554,160

7D.2 Are any of the +securities proposed to be issued without security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? Yes

7D.2a How many +securities are proposed to be issued without security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A?

9,703,905

7D.3 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.4 Will any of the +securities to be issued be +restricted securities for the purposes of the Listing Rules? No

7D.5 Will any of the +securities to be issued be subject to +voluntary escrow? No

7D.6 Please explain why the entity has chosen to do a placement rather than a +pro rata issue or an offer under a security purchase plan in which existing ordinary security holders would have been eligible to participate

The Company has raised A$20 Million under a Placement as it was considered the most effective way of raising that quantum.

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Part 7E - Lead Manager/Broker & Underwriter details

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker?

Morgans & WG Partners are Joint Lead Managers. Taylor Collison is Co-Manager.

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 6% of funds raised. 7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue None.

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

None.

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